32354 - BIF Equity

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Summary of Investment Information

Project Number

32354

Company Name

BANCO INTERAMERICANO DE FINANZAS SA

Date SPI Disclosed

Jan 9, 2013

Country

Peru

Region

Latin America and the Caribbean

Projected Board Date

Feb 21, 2013

Environmental Category

FI-2 - Limited

Status

Completed

Last Updated Date

May 28, 2026

Department

Global Industry, Financial Markets

Industry

Financial Markets

Previous Events

Approved : Feb 28, 2013
Signed : Apr 5, 2013
Invested : May 7, 2013

Sector

Commercial Banking - General

Project Description

The proposed project consists of an equity investment of up to US$50 million to Banco Interamericano de Finanzas (“BanBif” or the “Bank”).

The Project is expected to support BanBif accelerate the growth of its loan portfolio; while at the same time strengthen its capital base.

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	50.0

Development Impact

The development impact of IFC''s equity injection in BanBif is expected to be high given that:
- It will support SMEs and employment generation, thus, helping address the inequality that exists within the different segments of society.
- It will support Company''s adaptation to the Basel III capital standards, thus, helping also to strengthen the soundness of Peru''s financial system.
- It would help to increase the financial choices for companies and individuals, by supporting a Tier II bank in a very concentrated banking sector, with the top 4 banks representing over 80% of the banking sector''s loan portfolio.

-IFC''s stamp of approval, as an equity investor, and IFC''s knowledge in best practices, would help BanBif keep improving the institution perception within the local and international markets, thus, supporting the Bank in reaching international capital markets and local equity capital markets in a possible future IPO.
- IFC''s equity injection would allow BanBif to keep its growing path, while maintaining adequate leverage levels within the implementation framework of Basel III in Peru. As a consequence IFC capital injection would also allow strengthening the soundness of Peru''s financial system.
- Expand access to finance for SMEs: Provided that IFC equity injection in BanBif would support the Bank''s growth path, and that BanBif strategy contemplates an important focus on SMEs, this project would contribute to the expansion of financing available for SMEs, thus, improving the access to financial services to an underserved segment of the population.

Indicator	Metrics	Calendar Year 2022	Calendar Year 2023	Calendar Year 2024
CORE - E and S Management Systems (Y/N)	Compliance/Enhancement	Not Available	Not Available	Not Available
Access to Financial Services: Branches, including Frontier or Rural Areas	Branches in Frontier or Rural Areas-#	Not Available	Not Available	Not Available
Access to Financial Services: Branches, including Frontier or Rural Areas	Branches-#	Not Available	Not Available	Not Available

E&S Category Rationale / Risks and Mitigation

The proposed project consists of an up to US$50 million investment in newly issued common shares of BanBif. The project is expected to support BanBif accelerate the growth of its loan portfolio, while at the same time strengthen its capital base. The Bank’s portfolio is segmented in six products: SME’s 33%, large companies 22%, corporate loans 15%, mortgages 19%, consumer finance 6%, small enterprises 3.5% and microenterprises 0.5%. The Bank’s key sectors are manufacturing (26%), commerce (22%) and real estate (15%). Given that a large part of the portfolio lending is to SME’s, and that the key sectors entail mainly medium/low environmental and social risks, the project has been categorized as FI-2 in accordance with IFC’s Environmental and Social Review Procedure. The overall portfolio risk includes a limited number of business activities that have potential limited adverse environmental and social risks or impacts that are few in number, generally site specific, largely reversible and readily addressed through mitigation measures. For this project the client will be required to screen the sub loans against the IFC FI Exclusion List (except for retail loans and mortgages), the national laws and regulations and the IFC Performance Standards.

The key E&S risks and impacts derive from BanBif capacity to identify and manage the potential environmental and social risks associated with its lending activities particularly lending to corporate and large companies in the manufacturing sector. Additional environmental and social risks and impacts of the project derive from the capacity and systems in place to manage these risks, and the Bank’s practices with regards to labor and working conditions.

BanBif has implemented a satisfactory environmental and social management system and has dedicated environmental and social staff in place. The Risk Department is in charge of conducting the initial environmental and social review including sub project categorization (high, medium, low risk) approach. The environmental due diligence includes screening against the Exclusion List and verification of compliance with national environmental and social requirements. Key environmental staff has been trained in the management of the environmental and social aspects. In terms of labor and working conditions, the bank was found to be in compliance with the requirements of PS2.

Contacts

For Inquiries About the Project, Contact

Mr. Javier Arroyo
Banco Interamericano de Finanzas
Av Rivera Navarrete 600, San Isidro
Lima, Peru
Telephone: (511) 6133000
mailto:jarroyo@banbif.com.pe

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This Summary of Investment Information (SII) is prepared by IFC to disclose a factual summary of the main elements of the potential investment. It also includes findings and recommendations related to environmental and social considerations regarding this potential investment. The purpose of the SII is to enhance the transparency of IFC’s activities. For any project documentation or data included or attached herein, whether prepared by the project sponsor or otherwise, authorization has been given for public release by the project sponsor. IFC considers that this SII is of adequate quality for release to the public, but has not necessarily independently verified all of the project information therein. It is distributed in advance of IFC Board of Directors’ consideration and may be periodically updated thereafter. Board dates are estimates only and this document should not be construed as presuming the outcome of the Board Directors’ decision. The following SII is disclosed in accordance with IFC's Access to Information Policy (AIP) that went into effect on January 1, 2012.

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Task Description	Anticipated Completion Date
Inclusion of Performance Standards in the Bank SEMS procedure	COD
Prepare Staff Training Plan	COC
Implement Staff Training	Within 3 months after Disbursement

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